AXA Framlington UK Select Opportunities

This fund invests in UK companies of all sizes, with approximately one third of the portfolio in small, medium and larger-sized companies apiece. Veteran fund manager Nigel Thomas retired in March 2019 and former deputy-manager Chris St. John has taken over. The investment style and process remain the same.

Our opinion

Succession planning for this fund has been thorough and transparent. Chris is well-versed in the fund's process and has comfortably taken the reins from Nigel Thomas in a smooth handover. Having met Chris and scrutinised his investment approach, we see no reason why he shouldn't be able to replicate Nigel's excellent track-record and, as we await his track record to come through, we are happy to place the fund on the Elite Radar.

Fund manager

Chris joined AXA Investment Management in 2005 as a fund manager on the UK small cap desk. In 2008 he was appointed to run the UK smaller companies fund and he was made deputy of AXA UK Select Opportunities fund in 2013. Prior to joining AXA, Chris worked at F&C Asset Management where he also generated a good track record in small and mid-cap investing. He is also a Chartered Accountant and graduated from Durham University with an honours degree in Philosophy and Psychology.

Chris St John - AXA

We use our eyes, ears, experience and judgement to seek out companies that can grow to become much larger businesses over time.

Chris St. JohnFund manager

Investment process

Chris is a stock-picker who looks for both growth and value opportunities in firms of all sizes. Company meetings are a crucial part of the process, as strength of management is a key attribute. He will also look for companies with strong balance sheets: those with lower debt and a higher return on capital. These companies will often have pricing power, in markets with high barriers to entry. Chris also uses a thematic overlay, looking for the key macroeconomic and micro drivers that will help his stocks outperform. He will be patient when buying shares, to ensure he his getting a good price for a portfolio of around 60-90 stocks.

Risk

The portfolio is split approximately into thirds of small, mid and large-cap names. However, position sizes will be higher for the larger companies, so the fund broadly has the same risk characteristics as the UK stock market. Chris is aware of the benchmark, but not constrained by it. There is a dedicated internal risk management team that oversees the fund.

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